The French political and legislative uncertainty resulting from the dissolution of the National Assembly on June 9 is sowing doubt among those seeking to place their capital in Europe. After five prosperous years, during which France was perceived as the most attractive country in the Old Continent for setting up head offices, research centers or factories, the tide seems to be turning, fueled by the feeling that Europe must do more to resist. American protectionism and Chinese ambitions. This is the observation drawn up by the EY firm, which has been conducting a survey of 200 managers of companies with foreign capital for twenty years.
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According to a “special edition” of this panel produced in October, for half of these decision-makers, the attractiveness of France has deteriorated since June, and the same proportion (49%) has already reduced their projects investment in France, including 12% in a “significant” manner. “We are coming out of a long period of constancy [sur les plans économique et fiscal]explains Marc Lhermitte, partner at EY and co-author of the study. This barometer reflects a new instability. »
Leaders are wondering about future legislative or regulatory choices, are worried about the slowdown in reforms and administrative simplification, while being alarmed by the debt and budget deficit. However, it should be noted that these questions have not yet resulted in the cancellation of investment projects, but rather in a wait-and-see attitude. Thus, nearly six out of ten managers say that their projects are postponed, “at best » to 2025.
« Lassitude »
These delays in investment decisions could weigh on economic activity and reindustrialization: in 2023, companies with foreign capital were at the origin of 400 industrial investments, including 40% in medium-sized cities. They contribute to 16% of gross domestic product, employ 2.2 million people, or 13% of total employment, and produce 35% of industrial exports, recalls EY.
France is not alone in being the subject of questions. “These foreign companies consider the situation in Europe as a whole to be quite worrying », underlines Mr. Lhermitte. “We are seeing weariness with the economic and commercial dispersion of European countries. » Germany, which is going through an economic and political crisis, is also experiencing a certain amount of disaffection.
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